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Vol XIII No.9 Pages 60 Rupees 50 cargotalk.in By DDP Publications

South Asia’s Leading Cargo Monthly

august 2013

No.1 in Circulation & Readership

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Emergence of

e-Commerce 3PL companies gearing up to tap opportunities


Domestic Cargo Movement: Complete solution is the key

editorial Promising

SanJeet Editor

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Sr. Assistant Editor Ratan Kumar Paul Sr. Sub Editor HRitvick sen

Deputy General Manager Harshal Ashar Regional Head: North & West shiv kumar Assistant Manager: West Roland Dias


Studies show that e-Commerce companies in India realised the reason why consumers hadn’t taken to online shopping even after a decade. It was because there were serious bottleneck issues that needed to be solved. Because of the lack of reliable logistics and delivery partners, most players had set up their own warehouses across the country, backed by in-house last mile delivery networks. To get around customer’s unwillingness to transact online using their credit or debit cards, they introduced and turned Cash-on-Delivery into the default payment mechanism. To reduce the time it took to deliver a product to a customer, they decided to buy and hold their own inventory, instead of sourcing it after a sale

Editor SanJeet

Asst. Vice President Gunjan Sabikhi

avenue for domestic freight   he domestic cargo, especially express cargo and logistics market is likely to receive a boost with the fast emergence of e-Commerce in India. It is estimated that the market will grow exponentially in the years to come. In 2013 alone, the Indian e-Commerce market is expected to touch US$ 11 billion and an online shopper base around 14.3 million consumers. Both supply and demand sides are indicating tremendous potential for the logistics service-providers who are willing to offer seamless supply chain and delivery system for e-Commerce sector. India has nearly 35 million SMEs who are not able to leverage the power of the Internet, because they lack the critical mass to attract customers online. Significantly, niche portals for online shopping in India have established their portals with an array of services catering to customers wish-lists.


Sr. Marketing Co-ordinator Gaganpreet Kaur Design ruchi sinha Photo Journalist simran kaur Advertisement Designer Vikas Mandotia, Nitin Kumar Aarushi Agrawal

had happened. However, during the last two years most of that withered away, owing to escalating costs to maintain the required logistics infrastructure. Many e-Commerce players have either closed down or have sold themselves for peanuts in equity. Remarkably, the importance of thirdparty logistics service providers was then realised by the organised e-Commerce portals. As a result, the logistics service outsourcing market is currently growing steadily for an efficient and specialised supply chain and distribution management. The costs saved from logistics expenses are now passed on to price-sensitive end customers to make an online product competitive. Nevertheless, the impediments still remain. The complexity of cross-state barriers, poor surface transport, absent of uniform transit documentation and multiple taxes on inter-state goods transfers make logistics expensive and time consuming. Will the policy makers be serious on promoting e-trade in reality to make the cargo and logistics industry hassle-free, and for the greater interest of the country’s economy?

Production Manager Anil Kharbanda Circulation Manager Ashok Rana DDP Publications Private Limited New Delhi: 72 Todarmal Road, New Delhi – 110001, India. Tel.: +91 11 23731971, 23710793, 23716318, Fax: +91 11 23351503, E-mail: cargotalk@ddppl.com, Website: www.cargotalk.in Branch Offices

Mumbai: 504, Marine Chambers, New Marine Lines, Opp SNDT College, Mumbai – 400020, India Tel.: +91 22 22070129, 22070130 Fax: +91 11 22070131, E-mail: mumbai@ddppl.com Middle East: Z1-02, P.O. Box 9348, Saif Zone, Sharjah, UAE Tel.: +971 6 5528954, Fax: +971 6 5528956 Email: uae@ddppl.com CARGOTALK is a publication of DDP Publications Private Limited. All information in CARGOTALK is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part.The publisher regrets that he cannot accept liability for errors and omissions contained in this publication, however caused. Similarly, opinions/ views expressed by third parties in abstract and/or in interviews are not necessarily shared by CARGOTALK. However, we wish to advice our readers that one or more recognized authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the readers’ particular circumstances. Contents of this publication are copyright. No part of CARGOTALK or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing.The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action.The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged.This publication is not meant to be an endorsement of any specific product or services offered. The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian and International Advertisements Code.The publisher will not be liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear. CARGOTALK is printed & published by SanJeet on behalf of DDP Publications Private Limited. and is printed at Cirrus Graphics Pvt. Ltd., B-62/14, Phase-2, Naraina Industrial Area, New Delhi – 110028 and is published from 72Todarmal Road, New Delhi – 110001.


Contents August 2013

SECTORS National News 8 I Air India ties up with India Post to carry ‘Logistics Post’ cargo

8 I DB Schenker opens new office in Thiruvananthapuram

10 I GeoPost invests in DTDC, partnership to synergise strengths

14 I Safeducate ties up

with ITM University for MBA programme in supply chain & logistics

14 I Railside Warehousing Development: CWC and CRWC sign MoU with Ministry of Railways

International News 16 I Direct AI flight to Birmingham: A transhipment hub in the making

18 I Emirates SkyCargo :

Emphasis on e-freight and cool chain solution

Industry Associations 32 I New ACAAI Chairman in NR: Strengthen the association from inside out

32 I TIACA welcomes measures to strengthen the Single European Sky and speed up its mplementation

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Cargo Performance 34 I Airlines wise exim cargo performance for June 2013 at Delhi International Airport

35 I Airlines wise exim

cargo performance for June 2013 at Mumbai International Airport

36 I Airportwise

domestic cargo performance in India

38 I Airportwise

international cargo performance in India

Industry Events 40 I Calendar of International Events Family album

42 I CSC presents an

evening with difference to celebrate Annual Day

44 I JM Baxi hosts trade meet on the launch of DICT Shipping & Ports

52 I New container

terminal at Nhava Sheva will be operational by 2015

54 I International cargo

n Cover story

24 I Emergence of e-Commerce

3PL companies gearing up to tap opportunities e-Commerce, the buzzword in the logistics industry too, is projected to be the game changer in the years to come. The 3rd party logistics practitioners, irrespective of their size, are now setting their houses in order to cope with new trends. Cargotalk spoke to leading e-commerce portals and logistics service providers to delve into the opportunities in this sector and services required to satisfy customers.

terminal in Sonepat: Aiming to be a hub in North India

22 I Domestic

56 I Green Initiatives

COLUMNS Exclusive Interview 20 I DACAAI meet in Delhi: Reducing the gap between customers and service providers

Government Policy 50 I 24x7 Customs Clearance: Forwarders cautious to step up

Customer’s Perspective 58 I For efficient 3PLs: Need for bespoke supply chain solution

View Point

Cargo Movement: Complete solution is the key

Green Logistics

from Mahindra Logistics


National News New Launch

Air India ties up with India Post To carry ‘Logistics Post’ cargo

Recently, Air India has tied up with India Post for carriage of its ‘Logistics Post’ cargo, which is a new product, different from the regular post-office mail. This service is available from total of 15 airports at present which include six metros (Delhi, Mumbai, Kolkata, Chennai, Bengaluru and Hyderabad) and Agartala, Ahmedabad, Guwahati, Imphal, Lucknow, Nagpur, Patna, Pune, and Thiruvananthapuram. be booked at Logistics Post Air Booking Centre, RMS Bhawan, Delhi - 110006 and the delivery will be effected at the Logistics Post Delivery Centres in the destination city. (Minimum additional charges ` 50 per consignment @ ` 1/- kg).


ndia Post has started ‘Logistics Post Air Service’ in association with Air India on identified sectors amongst 15 linking airports. According to the agreement, Logistic Post related cargo will be booked by the Department of Post from customers which are accepted for carriage on airportto-airport, city-to-city or door-to-door basis. The tie-up with Logistics Post Air Services is expected to help in deeper penetration of market for Air India as well as increase cargo revenue for the airline. Charges shall be as per volumetric weight rates to be followed in accordance with IATA

standards (6,000 cubic cm = 1 kg for the purpose) (Air India aircraft) (i) First Category: Airport customer to deposit the consignment at the postal facility available at the airport premises at Logistics Post Air Booking Centre, Palam TMO, New Delhi – 110037 and the delivery will be effected to the customer at the post office facility at the destination airport. (ii) Second Category: City-to-City (on payment of additional charges). On payment of city-to-city charges, the consignment will

(iii) Third Category: Door-to-Door (on payment of additional charges). Pick up from the premises or delivery at the permises of the consignment (Minimum additional charges ` 100 per consignment @ ` 2/- per kg). Charges shall be as per volumetric weight rates to be followed in accordance with IATA standards (6,000 cubic cm = 1 kg for the purpose). There will be four types of rates for Logistics Post Air Service viz. (i) Standard rate - For consignment upto 49 kgs. (ii) Bulk Rate (BA) - for 50 kgs to 99 kgs. (iii) Bulk Rate (BB) - For 100 kgs to 249 kgs. (iv) Bulk Rate (BC) - For 250 kgs & above

DB Schenker opens new office in Thiruvananthapuram


olutions for retail, electronics, manufacturing and other industries are at customers’ doorstep now. DB Schenker, a leading provider of integrated logistics services, has opened a new sales office at Thiruvananthapuram, the capital of Kerala. The office is located opposite to Governemnt Pre-Primary School, Chackai, Pettah Post Office. p DB Schenker TRV Office inaguration

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The new office was inaugurated by Reiner A. Allgeier, Managing Director Schenker India, in presence of the Director

Region South India, K. Sankar. “DB Schenker in India is now a step closer to serve its customers in the region,” said Allgeier while inaugurating the new office. This is DB Schenker’s 37th office in India and the 11th office in the region of South India. The new office will cater to DB Schenker customers in the Thiruvananthapuram, Quilon, Nagercoil and Kanyakumari districts in the region. www.cargotalk.in

National News New Launch / Awards

GeoPost invests in DTDC

Partnership to synergise strengths DTDC Courier & Cargo announced recently an investment by GeoPost SA, a European express parcels player. This will allow DTDC and GeoPost to penetrate and consolidate its presence in India and key global markets more comprehensively.


nnouncing the partnership, Chairman and Managing Director Subhasish Chakraborty of DTDC said, “We are very excited about the partnership. DTDC will get access to European markets and new technologies. The association will play a huge role in developing and strengthening the business relationships between the two great countries.”

one of its leading players. The partnership will give us access to an unrivalled footprint in India and a great management team that shares our ambition to be a leading global CEP player serving both B2B and B2C markets.”

Iain Johnson, Chief Operating Officer, GeoPost International added “India is a critical global market which is set for strong CEP growth and we are delighted to invest in

Earlier this year, DTDC had spread its roots to the APAC region and the Middle East through acquisitions and joint ventures with Eurostar in UAE, Fast World Express Pty

Ltd in Australia, Kuwait Bayarek General Trading & Contracting Co. W.I.I. in Kuwait and Air Dragon Freight (Beijing) Co Ltd. in China.

DIESL wins ICE Awards The ICE Awards, now in its 5th year, were constituted in 2009 by The Shailaja Nair Foundation to provide a platform for recognising the best talent and creativity in in-house magazines. Winners are selected by the Governing Council and Jury members comprising of veterans of Media, Communication and Journalism.

p Samwaad wins the ICE Awards - 2013


rive India Enterprise Solutions won In-house Communication Excellence Awards (ICE Awards 2013), which was recently held in Mumbai, for the company’s in-house magazine, SAMWAAD (Best Cover Page). The award was received by the Head of Corporation Communications, Taruna Garda and her 10 i cargotalk i august 2013

team. Samwaad won the honour out of 40 entries submitted. The other nominated in-house publications include HDFC Bank, UTI Mutual Funds, Sir JJ College of Architecture, Maharashtra Police, Cathay Pacific Airways, Ford India, Lanco Infratech, DHL Logistics, HPCL and ACC.

DIESL (Drive India Enterprise Solutions Ltd.), a Tata Group company, jointly owned by Tata Industries and Tata International, is a leading provider of integrated logistics solutions, with over 190 warehouses connecting 7,000 towns across India. DIESL operates more than 5.9 million sq. ft. of warehouse area. www.cargotalk.in

On the Move New Appointments

Emirates Cargo N

abil Sultan has been appointed the new Divisional Senior Vice President, Cargo. His career spans more than 20 years in commercial roles within the Emirates. Sultan takes over from Ram Menen, who retired from Emirates recently. Prior to his new appointment, he was the Divisional Senior Vice President for Revenue Optimisation and Distribution for the airline. Between 1995 and 2008, Sultan gained commercial experience working in various management and leadership roles both within and outside the U.A.E, including being Senior Vice President for Commercial Operations West Asia and Indian Ocean, Senior Vice President, Commercial Operations Gulf, Middle East and Iran, and Senior Vice-President, Commercial Operations for Europe.

Cargo 2000 M

ax Sauberschwarz, Global Head of Carrier and Gateway Air Logistics at Kuehne + Nagel, has taken over as Chairman of Cargo 2000. Having held the post of Vice-Chairman of Cargo 2000 for the last three years, he will act as Chairman up to the AGM of Cargo 2000 in Los Angles in March 2014, when the Board of Directors will formally elect a new Chairman and Vice Chairman. Air France-KLM Cargo has confirmed that Gijsbert Woelders, Vice President Operations, will take over as the airline’s Cargo 2000 representative.

Geodis India L

Ministry of Shipping V

ishwapati Trivedi has assumed the charge of Secretary in the Ministry of Shipping. He succeeds Pradeep Kumar Sinha who was appointed as Secretary (Power). Trivedi is a 1977 batch IAS officer of Madhya Pradesh cadre. Previously, he was Chairman, Inland Waterways Authority of India. He has also served as Secretary (Social Justice & Empowerment), Secretary (Mines), Special Secretary and Financial Adviser in the Ministry of Home Affairs, etc.

eif Voelcker has been appointed as the Managing Director of Geodis India. Voelcker will be also responsible for managing Geodis’ South Asian Cluster organisation. In his new role, Voelcker will be responsible for the growth and development of the company in one of its markets of strategic focus. With over 21 years experience in freight forwarding, Voelcker has built up a distinguished career and strong competence in project logistics. He started his career in 1992 in Germany and later on he joined Rohde & Liesenfeld in 2003 as Managing Director Colombia, before the company was acquired by Geodis Wilson in 2007. He replaces Rene BachLarsen, who has taken up the role of Managing Director for Geodis Wilson in Singapore, from where he is also handling the group’s activities in South-East Asia area.

Volga-Dnepr launches SMS messaging for air charter updates


ustomers moving outsize and heavyweight air cargo with Volga-Dnepr Airlines can now track their cargo using SMS messages. The airline is using the short message service to customers’ mobile telephones to provide updates on the progress of charter flights and this is also supported by email alerts. According to Vitaly Andreev, Head of Customer Service for Volga-Dnepr Airlines, this new service will allow us to inform our customers

12 i cargotalk i august 2013

about their aircraft movement, including the date and flight number, airport information and estimated time of departure and arrival. SMS messaging enables us to provide customers with important updates on their cargo movement irrespective of the time of day, at weekends or over holiday periods when they are away from the office or in situations where they may have limited internet access. We hope customers will see this as another valuable service benefit.


National News Skill Development

Safeducate ties up with ITM University

For MBA programme in supply chain & logistics Safexpress recently collaborated with ITM University, Gwalior to introduce a specialised MBA course for supply chain and logistics industry. Divya Jain, Director, Safeducate, and a Masters in Management from University of Cambridge, UK, unveils the significance of the tie-up.


ain pointed out that Safexpress has been working towards bridging the huge skill gaps prevalent in the supply chain and logistics industry of India through its training academy, ‘Safeducate’. In line with that, the company has tied up with ITM University in Gwalior, to create a specialised MBA course in this field. “Supply chain and logistics industry is the backbone of the Indian economy and is one

We would also be covering Operational, Strategic and Implementation issues in SCM, Supply Chain Performance Metrics & Modelling, Logistics Management and recent trends in SCM. Divya Jain

Director, Safeducate

pDivya Jain addressing the press conference in Bengaluru

of the largest employment generators in the country. However, there are huge gaps when it comes to availability of quality manpower in this industry due to the lack of formal education and overall industry perception. Safexpress intends to fill these gaps by way of providing quality education, which has a right balance of theoretical and practical training in supply chain and logistics,” she explained. Jain informed that Safeducate has introduced a two year MBA course with

specialisation in SCM & Logistics at ITM University, Gwalior. The first year of the course would involve general MBA education. In the second year, Safeducate will be educating the students on core concepts and practices of SCM & Logistics. “We would also be covering Operational, Strategic and Implementation issues in SCM, Supply Chain Performance Metrics & Modelling, Logistics Management and recent trends in SCM. This classroom training will be followed by a six month industry internship in various organisations. This internship will be divided into four stints of 45 days each and is meant to provide extensive onground training in supply chain and logistics to the students,” she said. She also shared that Safeducate would introduce the specialised MBA courses in more educational institutes across India.

Railside Warehousing Development CWC, CRWC sign MoU with Rail Min.


ecently, the Ministry of Railway has entered into a MoU with CWC and CRWC for development of Railside Warehouse Complexes. This sets the general principle of association between Ministry of Railways and CRWC regarding Railside warehouses and development of cargo handling facilities near Rail

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Terminals. According to the agreement, CRWC will provide logistics solutions through storage, delivery and distribution by road for the users both for inward and outward cargo. The warehousing complexes will also have provision for direct loading/unloading of wagons into warehouses and into the road vehicles. The

p Suhas Kumar, along with MDs of CWC & CRWC

MoU was signed by Suhas Kumar, Adviser (FM)/Railway Board and the respective MDs of CWC and CRWC.


International Airport New Launch

Direct AI flight to Birmingham A transhipment hub in the making

On August 1 this year, Birmingham Airport will receive Air India’s flight, flying from Delhi Airport. The airline will operate four direct flights a week, using the new Boeing 787-800 ‘Dreamliner’ aircraft, on every Monday, Tuesday, Thursday and Saturday. Uday Dholakia, Brand Ambassador for Asian Markets, Birmingham Airport highlights the significance of the new services from cargo operation’s point of view… n Ratan Kr Paul engineering. Additionally, there has been an exponential rise in e-commerce based supply of fashion and jewellery products, primarily aimed at the wedding markets, but increasingly for daily consumption as well.


tatistics shows that around 68 per cent of perishables landing in the UK and Europe for the British Asian markets end up in the Midlands and the North of England. In addition, the major supermarket and multiple distribution centres are within an hour’s drive from the airport. The westward traffic of cargo and parcels is fuelled by the supply chains around; food and drink, high-end consumables, pharmaceuticals, robotics and automotive for the Indian sub-continent and the Far East. Commenting on the new services of Air India to Birmingham Airport, he maintained that Air India cargo team had studied the potential of Birmingham over the last three years. They found out that there is a huge scope for offering value-for-money, and the shortened delivery times to end users is favourable, compared to landing cargo at air-hubs on mainland Europe and Heathrow, and then moving them across to the Midlands by trucks. “Added to this, Birmingham is working with all the regulators to provide a single point clearance with deployment of e-freight,” Dholakia said. 16 i cargotalk i august 2013

In terms of exports from Birmingham, there will be processed food and drink for supermarket supplier-chains, luxury hotels, restaurants and e-commerce based high-end niche markets for gourmet food and drink. Automotive, robotic and highend engineering parts and just-in-time electronic and electrical components for cars and machinery will also be exported from Birmingham. “The demand for Britishmade and processed food and drink is growing exponentially; based on innovation, marketing and world-class quality driven by a robust regulatory framework,” Dholakia pointed out.

Birmingham is well served by M6 and M1 motorways. The British government has already invested in extending the road provision around the airport, which also supports the expansion of the nearby Jaguar Land Rover plant. Uday Dholakia

Brand Ambassador for Asian Markets, Birmingham Airport

Commenting on the possibilities of cargo traffic between Delhi and Birmingham he informed that imports to Birmingham will be fresh fruits, vegetables, flowers, pharmaceuticals, high-value gold, silver and diamonds, automotive parts and just-in-time supply of high-end casting and value-added

According to him, Birmingham Airport is all set to fulfil the demand from the airlines. The airport is extending its runway, which will be ready by spring of 2014, thus enabling wider-body aircraft and pure freighters to land and take off. Apart from the extension of the runway, the airport has just published its strategy to develop some 200 acres facilities to support port-centric activities. “Birmingham is well served by M6 and M1 motorway networks. Added to this, there is an opportunity for high-speed rail links to London. The British government has already invested in extending the road provision around the airport, which also supports the expansion of Jaguar Land Rover plant situated within the proximity of the airport,” Dholakia pointed out. He also highlighted that, Birmingham is ideally located at the centre of England, UK’s manufacturing heartland. “With connectivity increasing to Turkey, the Middle East, rest of Europe and the USA, the core ingredients for a European passenger and cargo hub are present and are been actively developed,” he emphasised. www.cargotalk.in

International Airlines Products & Services

Emirates SkyCargo

Emphasis on e-freight and cool chain solution The present industry trend is to adopt e-freight. Most cargo operators across the globe have already started the process to implement e-freight in their operations. Keki Patel, Cargo Manager, India & Nepal, Emirates informed that the airline is in a strong position to take the lead on that process. Patel also unveiled some new initiatives by Emirates SkyCargo for the benefit of customers.


ccording to Patel, Emirates SkyCargo was the first carrier to implement Electronic-Air Waybill (e-AWB) shipments under the industry’s recently ratified multilateral e-AWB standard and its home base in Dubai is now 100 percent e-AWB across its operations. This demonstrates Emirates’ continued efforts in adopting the latest innovations and industry standards. Since 2011, Emirates SkyCargo has put in place over 120 bilateral e-AWB agreements with its customers to ensure a smooth transition from paper Air Waybills to electronic record formats-Electronic Air Waybill data. Apart from e-freight initiatives, SkyCargo has also strengthened its Cool Chain Premium Service with the appointment of additional cold chain solutions providers, for a quick response

Fact Box n The airline carries over 1,400 tonnes of cargo a week, combined from Chennai, Hyderabad, Bangalore, Kochi, Thiruvananthapuram and Kozhikode. n Additionally, the airline operates two weekly freighters with capacity of over 200 tonnes of payload on the Dubai–MumbaiDubai route as well as the DubaiChennai-Hong Kong–Dubai route. n Overall, the airline carries more than 3,000 tonnes of cargo from Mumbai, Delhi, Ahmedabad, Kolkata, Chennai, Hyderabad, Bangalore, Kochi, Thiruvananthapuram and Kozhikode to various points across the world every week. 18 i cargotalk i august 2013

to the market tends. Patel pointed out that the seamless movement of important temperature-sensitive healthcare and pharmaceutical products from one point to another is one of the key strengths of SkyCargo. Emirates’ load factors presently rank between 70-80 per cent, while cargo load factors are consistently high across the network. “In view of Emirates SkyCargo route network spanning the globe, covering 134 destinations in 77 countries on six continents; some of our markets will need quite a substantial investment in capacity and handling capability in order to cope with the growth and demand,” felt Patel. Recently, the airline has introduced a few innovative products for the Indian customers. Patel maintained that Emirates was one of the first airlines to offer special cool chain solutions in India which is designed for the movement of temperature sensitive commodities such as pharmaceuticals, vaccines and perishable goods. Thanks to use of ‘e-freight’, Emirates SkyCargo has made it more efficient for agents as well as customers to deliver and receive cargo on time. “We expect to capitalise on the recent induction of an enhanced cool storage import warehouse at Mumbai by increasing the import of cargo requiring special attention such as pharmaceutical goods,” Patel maintained. The airline carries over 1,400 tonnes of cargo a week, combined from Chennai, Hyderabad, Bangalore, Kochi, Thiruvananthapuram and Kozhikode. Overall, the airline carries more than 3,000 tonnes of cargo from Mumbai, Delhi, Ahmedabad, Kolkata, Chennai, Hyderabad, Bangalore, Kochi, Thiruvananthapuram and Kozhikode to various points across the world every week.

Thanks to use of ‘e-freight’, Emirates SkyCargo has made it more efficient for agents as well as customers to deliver and receive cargo on time.” Keki Patel

Cargo Manager, India & Nepal, Emirates

Recently, Emirates has significantly boosted its cargo capacity with the addition of three new Boeing 777F aircraft, taking its freighter fleet to 10 aircraft and its dedicated freighter network to 13 destinations. These are Taipei, Chittagong, Eldoret, Lilongwe, Kabul, Almaty, Gothenburg, Zaragoza, Viracopos, Tripoli, Djibouti, Liege and Chicago. Later this year Emirates will be launching three additional new routes including Stockholm on September 4, Clark on October 1 and Milan-New York on October 1. “These new destinations will boost the exports from India as well,” highlighted Patel. www.cargotalk.in

Exclusive Interview Annual Convention

DACAAI meet in Delhi Reducing the gap between customers and service providers The fourth Annual Convention of the Domestic Air Cargo Agents Association of India (DACAAI), which is being held on August 9 in New Delhi, would ponder on the solutions that fulfill the gap between services offered by carriers as well as cargo agents and actual requirements of the customers. With the theme ‘Vision to Succeed – 2016’ the DACAAI Convention will be attended by its members, policy makers, regulators, service providers and facilitators, says Gaurav R Ghuwalewala, President, DACAAI in an interview with Cargotalk.


t present, the domestic air cargo industry is passing through a mismatch between demand and supply. On one hand, there is a steady increase in the number of passenger aircraft that also carry substantial volume of cargo. On the other, there is a drop in cargo traffic at most airports. “It is a challenging situation for all airlines and cargo agents. Further, the situation is getting complex by influx of private terminals at various airports, leading to increased transit times and increased financial pressures” said Ghuwalewala. Other major challenges before the industry today are: service level, and proper declaration before handover to a carrier. “In the past one year; DACAAI, in conjunction with various airlines, has trained approximately 100 persons across the country with a two-day DGR awareness course. More such courses are being planned in various parts of the country,” he informed. “We feel that there is disconnect between the service offerings from airlines and agents, against the service requirements of the customers. The gap has been widened with the inclusion of new handling agencies which perform many functions at airports,” Ghuwalewala observed. In his opinion, all the efforts of service providers like airlines, agents, terminal operators and policy makers need to be focussed at fulfilling the requirements of the customer.

charging heavily for their services. “In addition, our expectations from DACAAI members are to realise the importance of training of employees and development of innovative services to suit customer requirements,” he added.

Gaurav R Ghuwalewala President, DACAAI

inculcate the domestic air cargo trade like setting service quality benchmarks for all stakeholders, devise ways and means to reduce the impact of fuel price hike on cargo, provide standardised facilities at Tier-II and Tier-III cities at reasonable costs. He also maintained that service providers like the private terminal operators should provide a crisp service quality given the fact that they are

The major topics that the DACAAI convention will discuss are ‘Customer’s Perspective’, ‘New Partners in the Trade’, ‘Role of Technology’ and ‘Domestic Air Cargo Safety & Security’. Elaborating on the importance of the topics of discussions he maintained that requirements of existing and new customers like e-commerce segment will be aired at the convention. It will also be a platform where the customers and representatives from various genres will present their logistics practices and requirements. New partners in the trade and the value that they add to the supply chain network – like common user terminals by AAI at Tier-II cities, private common user terminals at metros, cargo GSAs, LCCs will also be discussed.

“The DACAAI Convention is an apt platform where all stakeholders get a chance to meet and interact with each other, and customers to have meaningful exchange of ideas. Such interactions will surely become the basis of the future decisions for the industry,” he further added. He expects the policy makers to make certain policies which will 20 i cargotalk i august 2013


View Point Lead Story

Domestic Cargo Movement

Complete solution is the key The domestic cargo industry needs more support from the policy-makers, and particularly from facilitators. Of late though, the cargo infrastructure is being modernised and more state-of-the art facilities are being created by the air cargo terminal operators. In particular, domestic cargo operations have been in critical shape across major airports. Surface transport infrastructure too, is in the same morass. An industry perspective…. n Ratan Kr Paul


he domestic cargo operators are witnessing a gradual change in the way cargo movement happens in India. More and more companies are looking for value addition in the transportation system. “We see some large companies actively pursuing a total revamp of their distribution models, reorganising the current transportation setup by eliminating multiple distribution centres and moving towards direct distribution from regional distribution centres-probably a step towards post-GST readiness,” said Srinivas Sattiraju, CEO, Delex. Besides the reorganisation of distribution set-up, the industry is also witnessing some key value additions like specialised packing, use of temperature-controlled boxes and RFID in package-tracking. “These, and many other solutions for the movement of time-sensitive and critical cargo, are gaining importance, and we at Delex are actively moulding ourselves to match customer requirements by redesigning

our internal operations strategies and system upgradations. Besides, we are also adopting to the new VAS trends of some of our major customers,” added Sattiraju. According to him, these value-additions to customers from service providers ensure long-term partnership for mutual benefit, and is good for the industry as well. “Every customer we engage with has unique requirements and they are dynamic in nature. We have to be in tune with the changing consumer trends. So the challenge we see is to quickly alter course and adapt processes that suit customer requirements. It puts us in a continuous learning mode. Besides, most of such new process requirements do not come with additional cost approvals, but at the prevailing cost. This means we do not have to be on constant overdrive to innovate processes that the customer needs,” he pointed out. “Due to high interest and cash-flow problems being faced by some of our customers (which has an immediate effect on us), we have been constrained from increasing fleet in view of the pick-up in demand. Over the last one year, the new fleet addition has been negative. Also, as more and more customers are demanding single-window logistics solution providers, we are facing challenges for setting up other infrastructure facilities apart from trucking,” added Gagandeep S Klaire, Director, Marketing, Majha Transport. Providing the air cargo perspective, Suraj Agrawal, Director, Monopoly Carrier & Cargo and Vice President, DACAAI, said that after the grounding of Kingfisher Airlines there was a space shortage in domestic cargo, specially on premium flights. Carriers had increased rates under FSC and other charges like AWB fees and surcharges. Airport charges

22 i cargotalk i august 2013


is another factor which has affected the air cargo business adversely.

Present Market Scenario

According to Sattiraju, with the rupee falling and US economy looking up, there is scope of growth of the export market with the downtrend in the domestic consumption (as experts say). As a result, Indian domestic logistics market is likely to be affected, in addition to the adverse affect on operating costs and margins, because of the impact of fuel price increase. Klaire, pointed out that the extra capacity (supply of vehicles) created during the last two quarters of the recession in India has just started being utilised. Because of this additional capacity, the freight rate was not moving upwards in spite of increase in fuel prices and other costs. However, as the extra

Core Issues n Rising fuel prices n Delays in cargo handling and clearance n Haphazard implementation of security directives n Lack of transparency in airport charges, charges imposed by airlines capacity has already been created and new vehicle orders are not being placed by truck operators (whereas old depreciated vehicles are being phased out), it is likely by the end of fourth quarter we can see a scarcity in trucking capacity resulting into mismatch in demand and supply. “If there is an improvement of our economy, then this will further aggregate the pressure on existing trucking capacity. Already, white and agricultural goods are looking at increasing freight rates. The existing demand, which was met by imports, is shifting towards domestic procurement due to depreciation in the rupee,” he observed. “Increasing costs, falling service level, duplication of tax like TDS, service tax only on air cargo and absence of government policy to monitor the same, are the serious concerns before us,” Agrawal maintained. www.cargotalk.in

Srinivas Sattiraju CEO, Delex

Gagandeep S Klaire Director, Marketing, Majha Transport

Appeal to policy makers and facilitators

To streamline domestic cargo movement for the greater benefit of the country’s economy, Sattiraju urged for implementation of uniform transit documentation for all cargo movement across the country. “Today, we

n Lack of space at air-cargo terminals for domestic air cargo companies n Lack of clarifications on service tax n Absent of uniform transit documentation and tax policy for surface cargo n Multiple check-points to collect toll fee/taxes n Insurance schemes for trucking industry have better IT solutions to replace different forms with some better tax-tracking systems,” he said. He also recommended better, ‘future-ready’ design for building a robust infrastructure for logistics operation. “Have a better tax system for trucks and air cargo, so that there are no multiple check-points to collect toll fee, entry fee, handling fee and the like, complicating the cost structures. It just confuses the end users of services, besides pushing up overall costs,” he emphasised. In Agrawal’s opinion, industry stakeholders should think seriously about how to improve services. “The government has formed the Air Cargo Logistic Promotion Board under the Ministry of Civil Aviation. We expect it should work under time-frames and give equal importance to the demand of domestic air cargo. The government should also put down guidelines for carriers by introducing a regular monitoring system.”

Suraj Agrawal Director, Monopoly Carrier & Cargo and Vice President, DACAAI

“There has been unnecessary delay in implementation of GST. Because of this, the individual tax barriers are still there and valuable time is wasted on road. Secondly, though roads infrastructure is steadily being built for faster and smoother movement of trucks, the toll barriers are being run inefficiently, resulting in wastage of time at each barrier,” highlighted Klaire. He also pointed out that the new Motor Vehicle Act is still awaited and implantation of Carrier Act. 2007 is still being resisted at the state level. Though insurance companies have been very pro-active in spheres such as health, life, car, and establishments, but availability of options for trucking industry has not been worked out yet by them. “The government should put serious thought to resolve these pressing issues,” he appealed.

Airlines-wise domestic freight traffic statistics during Jan-Mar 2013 Airlines

Freights % (in tonnes) Share

Blue Dart Aviation............. 39,234 Indigo Airlines 38,944 Jet Airways....................... 33,690 Spicejet 29,089 Air India............................. 24,684 Go Air 16,361 Jet Lite................................. 6,648 Pawan Hans 62 Deccan Express Cargo........... 21 Other Non-Schd 189 Operators Total

20.77 20.61 17.83 15.40 13.07 8.66 3.52 0.03 0.01 0.10

1,88,922 100.00 Source: AAI august 2013 i cargotalk i 23

Cover Story Market Trends

Emergence of

e-Commerce 3PL companies gearing up to tap opportunities

24 i cargotalk i august 2013


e-Commerce, the buzzword in the logistics industry too, is projected to be the game changer in the years to come. The 3rd party logistics practitioners, irrespective of their size, are now setting their houses in order to cope with new trends. Cargotalk spoke to leading e-commerce portals and logistics service providers to delve into the opportunities in this sector and services required to satisfy customers. n Ratan Kr Paul


ustomer buying patterns are rapidly changing across the world, and India is certainly not an exception. Accordingly, the logistics and supply chain is also changing its face to fulfil the requirements of its B2B as well as B2C customers. Studies reveal that in a conventional retailing supply chain, customers are responsible for purchasing their goods at the retailer’s location. In this case, location is an important dimension of retailing. As a result, retailers have to bear significant costs to retain such an accessible location, and to keep and expand their customer base. These charges are reflected in the final cost of an item, which is passed on to consumers. The retailer maintains a level of in-store inventory which is maintained by regional distribution centres, where goods from a wide range of suppliers are stored. Studies also reveal that the reason consumers hadn’t taken to online shopping, even after a decade, is because there are serious bottlenecks that need to be solved first-hand, instead by a partner. The lack of reliable logistics and delivery partners meant most players set up their own warehouses across the country, backed by in-house last mile delivery networks. To foster long-term trust, they set up their own in-house customer support organisations. To get around customer’s unwillingness to transact online using their credit or debit cards, they introduced and turned Cash-on-Delivery (CoD) into the default payment mechanism. To reduce the time


it took to deliver a product to a customer, they decided to buy and hold their own inventory, instead of sourcing it after a sale had happened. However, the scenario is changing rapidly, thanks to the changing mind sets of retailers, 3rd party logistics service providers, and end-customers. e-Commerce portals have established their importance in this burgeoning market, partnering with efficient logistics service providers.

Leading Portals

Deepa Thomas, e-Commerce evangelist, eBay India, pointed out that globally, markets such as the US and Europe are mature markets with deep penetration of Internet, organised retail and e-Commerce. In the West, consumers are more evolved, offline and online boundaries have blurred and shopping is now done from the consumer’s pocket with the advent of mobile commerce. Comparatively, India

Though e-Commerce in India is still at a nascent stage, it is evolving at a rapid pace. It is likely to be larger than organised retail in India.” Deepa Thomas e-Commerce evangelist, eBay India

has diverse regions, internet and modern retail are still deepening their reach to Tier-II and Tier-III cities and rural India. “Though e-Commerce in India is still at a nascent stage, it is evolving at a rapid pace. It is likely to be larger than organised retail in India,” she said. She highlighted a recent report of Internet & Mobile Association of India (IAMAI) that has estimated Indian e-Commerce market to US$ 11 billion in 2013 and an online shopper base of around 14.3 million consumers. Indian consumers were earlier apprehensive about shopping online and consequently, their frequency of purchase was low. Over time, their inhibitions have reduced, making them browse more often and make regular purchases. As opposed to popular belief, Indians are not hesitant to make high-value purchases online and are willing to experiment with their purchases. They appreciate the variety offered by online shopping portals and scroll through to get the best deals that offer value for money. eBay is a marketplace which provides a platform that enables brands, retailers, manufacturers, distributors, entrepreneurs (big or small) to reach a large buyer audience. “eBay India is growing at a faster rate than the Indian e-Commerce industry. On an average day, 13 products sell every minute on eBay India,” she said. Thomas also asserted that eBay India played a defining role in shaping Indian e-Commerce over the last eight years and is committed to fostering the growth of Indian e-Commerce and actively benefitting august 2013 i cargotalk i 25

Cover Story Market Trends

As per an ASSOCHAM survey, the online retail industry in India is likely to be worth ` 7,000 crore by 2015.” Praveen Sinha Co-Founder, Jabong.com consumers, merchants, brands, retailers and the government. At the last count, eBay India has consumers from more than 4,306 cities/towns. Praveen Sinha, Co-Founder, Jabong. com maintained that India is already a booming market for e-commerce portals. With the internet population expected to grow from current 100-120 million to 300400 million users in next 4-5 years and with increasing share on online shoppers within this population, e-Commerce is expected to grow exponentially. “As per an ASSOCHAM survey, the online retail industry in India is likely to be worth ` 7,000 crore by 2015,” he highlighted. He pointed out that according to a Comscore report of January-May 2013, Jabong.com had the highest amount of traffic on its website within a year of its launch. In March 2013, Jabong held an Alexa Traffic ranking of 44 in India. Jabong also ranked amongst the Top Ten in Google Zeitgeist India trends, making it the most searched term in 2012 in India leading

to our popularity growth. “We have got very positive response where customers have clearly mentioned Jabong.com for the leadership in assortment and overall customer experience,” he asserted. Sinha further pointed out that online retailers are busy innovating new ways and flexible choices for its customers to shop online. While in some cases where people wished to touch the product they purchased; generous return policies and customer reviews have now made it possible to get an idea of what to buy without worrying about whether it is acceptable. “A 30-day return policy successfully addressed this concern for customers who were not willing to make that click online, and the concept of open box delivery (checking of the product before accepting delivery) which we offer, is considered even more delightful by customers. We also offer a zoom-in on the product image to get a 360 degree view for an easy estimate of the size, colour and fabric,” Sinha added.

Infrastructure Requirement

Thomas maintained that there are two important components of the infrastructure needed for a thriving e-commerce market, i.e., payment gateways and courier and delivery services. “We see the logistics (delivery) companies mature far faster than the payment gateways. Most courier companies have invested in technology and processes,” she maintained. She made it clear that eBay India is a marketplace and does not own/keep any inventory. It is an online technology platform that connects seller with buyers and facilitates trade. “The challenge faced is on deliveries,

eBay Facilities n PaisaPay: An integrated online and payment mechanism for Indian consumers n Global Easy Buy: A wide selection of items available on eBay.com to the Indian buyer at his doorstep through an end to end managed process n Mobile Application: Empowering the Indian consumer through mobile applications 26 i cargotalk i august 2013

n Global Reach: Enabling the small manufacturer / exporter to leverage the eBay global platform and large buyer base across the world n PowerShip: Facilitating shipping service to enhance consumer experience which will significantly increase the efficiency of managing multiple item shipments for eBay sellers and delivery of items to buyers

Deepa Thomas e-Commerce evangelist, eBay India

Praveen Sinha CO-Founder-Jabong.com

Prem Kumar CEO, Uniworld Logistics

which need to be made in remote corners of the country. In many locations, courier services operate on the franchisee model, and that impacts reliability. That said, wherever they operate with their own offices, their services are keeping pace with the growth of e-Commerce,” Thomas pointed out. In Sinha’s opinion, though the skeleton is ready, there are various parts which are yet to be developed. e-Commerce has enabled to improve the overall supply-chain infrastructure in the country. As delivery is part of the customer experience, many www.cargotalk.in

companies are helping to develop the system. “We are happy to provide customers with the fastest delivery, within the same day in Delhi and NCR, 48 hours in top cities and within 1-3 days in other cities. We deliver pan-India with the help of our delivery partners,” Sinha stressed.

Sanjiv Kathuria Director & CEO, Dotzot

Jabong.com has a mixed model for warehousing. The company believes in large warehouses supported by multiple smaller warehouses. “The state-of-the-art facilities that we have today are equipped to carry out operations in the best possible way. We adhere to strict rules and guidelines to maintain highest standards of logistical operations. Our edge lies in robust measurement process and training of our employees,” Sinha claimed. He also stressed on the requirements from customers’ side. “They expect reliability and promptness in delivery, and accuracy and availability of information on the shipment,” he said.

Are Logistics Service Providers Ready?


Amit Bajaj Director, Mituj Marketing


Many cargo logistics service providers have already established separate wings to tap the fast emerging e-Commerce sector. Prem Kumar, CEO, Uniworld Logistics said, “Due to the demographic profile of India, we have a huge population of young people who are net-savvy, device-savvy and are connected online. These people are always looking for the best deal, and today e-Commerce sites and online marketplaces are fulfilling these requirements.” This group is fiercely independent and also has a substantial disposable income. In his opinion, e-Commerce requires excellent warehousing, inventory controls and distribution to help the products to reach the buyers at the lowest cost and in the quickest timeframe. Due to this, logistics and especially 3PL will receive a huge

shot in the arm. “We at Uniworld with our Integrated Logistics Park in Irungattukottai, Sriperumbudur (near Chennai) can offer customised solutions to e-commerce sites for warehousing, domestic distribution, 3PL and 4PL services,” Prem Kumar informed. Sanjiv Kathuria, Director & CEO, Dotzot, is upbeat about the growth potential of the E-retails industry. “Various estimates put the current market size of the e-Retail industry at around ` 6,000 crore. This is growing more than 50 per cent and is estimated to become ` 25,000 crores by 2016. The size of the e-retail logistics market is linked to this growth as delivery to the door step is a mandatory element of e-retail. It is estimated the size of the delivery market will ` 2,000 crores by 2016,” he highlighted. E-Retail needs wide geographical reach, quick turnaround of CoD and efficient pick-up of returns. “DotZot is the only pan-India specialist and focussed delivery service provider for the e-Retail industry segment. All our processes, systems and IT support have been tailored for the e-Retail

We can offer customised solutions to e-commerce sites for warehousing, domestic distribution, 3PL and 4PL services.” Prem Kumar CEO, Uniworld Logistics

august 2013 i cargotalk i 27

Cover Story Market Trends

segment. In DotZot, we combine DTDC’s pan-India delivery reach, with processes for the fastest turnaround of CoD, pick-up of returns and faster information flow,” Kathuria added. DotZot provides a wide range of services that include DotZot Express, DotZot Economy, DotZot Premium Service, Returns & Exchanges, Collect On Delivery and Warehousing. “Our vision is clearly to transform the concept of logistics for E-Retail and to be the leader in this segment. The current quality and infrastructure of Logistics for E-Commerce is way behind what exists in the developed world. This is the gap DotZot aims to fill. As the market evolves, we would move from being only a delivery service provider to a complete order fulfilment partner providing services of warehousing, picking, packing and also delivery,” he shared. According to PC Sharma, CEO, TCI XPS, most of the products sold online in India are on CoD basis. This facility needs the capability to collect cash and remit the

28 i cargotalk i august 2013

As the market evolves, we would move from being only a delivery service provider to a complete order fulfilment partner.” Sanjiv Kathuria Director & CEO, Dotzot same back to the shipper in the stipulated time. “For the logistics sector to make the most of the opportunity, there is an urgent need to enhance reach as orders are placed from all over the country. The sector also needs enhance service standards apart from monitoring day-to-day functions for on-time and safe delivery,” he observed. Sharma maintained that TCI’s express service division TCI XPS is fully geared to cater to the logistics requirement of

e-commerce sector. “We have more than 500 computerised branches connecting over 13,000 delivery locations and servicing more than 22,000 pin codes directly on a day-to-day basis, apart from diplomatic locations,” he added. TCI XPS offers surface, air and train logistics services. The company is offering pick-up service from manufacturer to the customer, CoD & FoD (Freight on Delivery) services to its customers for the last 15 years. Established logistics companies apart, domestic freight forwarders/cargo agents are focussing on e-Commerce segment in a big way, too. Amit Bajaj, Director, Mituj Marketing observed that the domestic air cargo market had witnessed a slowdown because of sluggish trends in automobile sector. He, however, said that the new sectors, like e-commerce, are offering big opportunities for domestic cargo operators. “We have noticed that movement of inbound domestic cargo is being shifted from metro cities to Tier-II and Tier-III cities. And these cities are huge market for e-Commerce,” he pointed out.


Industry Associations ACAAI / TIACA

New ACAAI Chairman in NR Strengthen the association from inside out Mahesh Trikha, MD, Aargus Global Logistics, has been elected unopposed for the post of the Chairman of ACAAI (Air Cargo Agents Association of India), Northern Region. Speaking to Cargotalk, Trikha informed that his primary objective would be strengthening the association further in this region


y first and foremost area will be to focus to bring ACAAI back in business as the association and its members have lost touch. We needs to bring back confidence in ACAAI members. It’s a challenge for sure, and my first and foremost duty is to strengthen the association with a strong board and then take it further,” said Trikha. According to him, the major trends and challenges before the air cargo industry in India is the ongoing downfall and stagnation in business. “Due to the recession in the world economy, it is the biggest challenge. In addition, the rupee has gone down considerably and have made imports dearer and exports are not picking up as expected,” he explained.

Commenting on the present air cargo infrastructure, Trikha maintained that India has always lacked resources and infrastructure to cope with volume surges. “ACAAI, as a representative body of the air cargo industry, has been doing its best with the government bodies, related agencies and its members to make best use of infrastructure and services available,” he said. However, he appealed to industry stakeholders to look at the air cargo industry positively. “We all will have to work for an industry status for which we have been pleading for years. We have to create positive infrastructure keeping in view the development of export of new products, namely pharma which needs special attention and equipment. My appeal to the industry players is that they must participate and be vocal about their ideas and concerns,” he concluded.

Mahesh Trikha

Chairman, ACAAI - Northern Region

On 24x7 Customs Clearance n I personally feel it is a very good move and the industry has to take it positively. Customs are short of staff, but that is not an issue at this stage till the volume picks up across the country every week.

TIACA welcomes measures to strengthen Single European Sky and speed up its implementation

The International Air Cargo Association (TIACA) strongly welcomes the June 11 proposal by the European Commission.

A Oliver Evans

Chairman, TIACA 32 i cargotalk i august 2013

fter a decade of discussions, legislation and failed implementation, TIACA says it is imperative that the EU and its member states take action now to realise the benefits of an integrated and modernised air traffic management (ATM) system.

performance are required, in order to ensure real improvements in the efficiency of air navigation services across Europe. This must, however, be accompanied by appropriate incentives and legal penalties in order to ensure compliance.”

Oliver Evans, TIACA’s Chairman, said, “We welcome the enhanced performance targetting scheme. More stringent EU-wide targets for safety, capacity, cost-effectiveness and environmental

“The proposal for greater flexibility and industry partnership in building the Functional Airspace Blocks should help create the basis for a more efficient air traffic management system. www.cargotalk.in

Cargo Performance Export/Import

Delhi International Airport Cargo Department, IGI Airport, New Delhi (Airline-wise Import/Export Cargo Performance for the month of June 2013) S. No. Airlines 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68

Jet Airways Cathay Pacific Emirates Air India British Airways Lufthansa Cargo Airline Singapore Thai Airways Qatar Airways Fedex Express Corpation Kalitta Air Etihad Airways Swiss Intl Airline Ltd Malaysian Airline System Klm Uzbekistan Virgin Atlantic Air France Finnair Turkish Airlines M/S All Nippon Airways Japan Airlines Aeroflot Cargo Airlines China Southern Airlines Uni-Top Airlines China Eastern Airlines Saudia Martin Airline Lufthansa Cargo Ag Air China United Airlines Indigo Cargo China Air Blue Dart Eva Air Ariana Afghan Airlines Spice Jet Mahan Air Asiana Airlines Dhl Express Gulf Air Air Shagoon Pvt. Ltd. Air Arabia Ethopean Airlines Oman Air Air Astana Sri Lankan Airlines Ltd Air Mauritius Hercules Aviation Flywell Aviation Kuwait Airlines Biman Bangladesh Kenya Kam Air Pakistan International Philippine Airlines Abakan Avia Ups Royal Jordanian Airlines Safi Airways Turkmenisthan Airlines Jetlite Thai Airways Iraqi Airways Tajik Air Air Shagoon Druk Air Kyrgyzstan Air Company Total Cargo handled in June ‘12’ % VARIATION

34 i cargotalk i august 2013

Export With- Out Peri- shable (MTs) 1132 886 962 664 1046 527 525 246 442 444 407 352 448 338 389 414 359 373 419 393 242 141 324 64 0 131 185 119 146 88 169 189 86 139 27 83 127 123 61 0 73 86 70 62 50 45 56 44 56 43 1 4 22 21 7 10 17 0 13 13 6 0 0 1 1 1 1 0 13914 13545 2.73%

Export Export with Perishable Perishable Cargo (MTs) (UPL) (MTs) 240 66 1194 270 95 155 18 78 230 7 3 28 21 35 56 42 3 20 7 11 4 9 57 13 0 0 143 5 21 17 2 1 1 1 12 0 0 4 0 0 25 0 9 3 23 22 0 11 0 0 34 4 0 0 0 0 0 0 0 0 4 2 1 0 0 0 0 0 3005 2344 28.19%

1372 952 2156 934 1141 682 543 324 672 451 410 379 470 373 444 456 363 393 425 404 245 150 381 77 0 131 329 124 166 106 170 190 87 141 38 83 127 127 61 0 99 86 79 65 72 67 56 55 56 43 35 7 22 21 7 10 17 0 13 13 10 2 1 1 1 1 1 0 16919 15889 6.48%

Import (MTs) 1794 1780 570 1075 694 786 741 925 364 487 445 433 273 331 192 167 252 211 130 105 243 331 45 339 384 217 12 213 111 145 71 28 91 35 121 61 16 3 61 122 2 0 2 14 2 2 13 13 0 0 4 29 0 0 11 7 0 14 0 0 0 5 0 0 0 0 0 0 14520 13781 5.36%

Total Cargo (MTs) 3166 2732 2726 2010 1835 1468 1284 1249 1036 939 854 812 742 704 637 623 615 604 555 509 489 481 426 416 384 348 340 337 277 250 241 218 178 176 159 144 143 130 123 122 100 86 81 79 74 69 69 68 56 43 39 36 23 21 18 17 17 14 13 13 10 6 1 1 1 1 1 0 31439 29670 5.96%

% of Total 10.07% 8.69% 8.67% 6.39% 5.84% 4.67% 4.09% 3.97% 3.30% 2.99% 2.72% 2.58% 2.36% 2.24% 2.03% 1.98% 1.96% 1.92% 1.77% 1.62% 1.55% 1.53% 1.35% 1.32% 1.22% 1.11% 1.08% 1.07% 0.88% 0.80% 0.77% 0.69% 0.57% 0.56% 0.51% 0.46% 0.46% 0.42% 0.39% 0.39% 0.32% 0.27% 0.26% 0.25% 0.24% 0.22% 0.22% 0.22% 0.18% 0.14% 0.13% 0.11% 0.07% 0.07% 0.06% 0.06% 0.05% 0.04% 0.04% 0.04% 0.03% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%



eXPORT/iMPORT cARGO tONNAGE hANDLED IN June 2013 S.No. Airlines 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

Jet Airways Emirates Lufthansa Air India Singapore Airlines Cathay Pacific British Airways Etihad Airways Qatar Airways Saudi Arabian Airlines Turkish Airlines Swiss Intl. Airlines Federal Express Air France Ethopian Airlines Malaysian Airlines Thai Airways Virgin Atlantic UPS Delta/KLM Airlines Kenya Airways South African Airlines Air Cargo Arologic C/O Lufthansa Kuwait Airways Martin Air Fin Air Gulf Air Air Mauritius EL-AL Airlines Air Arabia Korean Air NorthWest Airlines Blue Dart United/Continental Airlines Oman Air Srilankan Air Indigo Air Bangkok Airways Yemenia Airways Pakistan intl Airlines Iran Air Royal Jordanian Egypt Air Air China Royal Joradian Austrian Air Baharin Airlines Kingfisher Airlines Qantas Island Aviation (Maladvian) Charters Others TOTAL


Export General

Export Perishable

Total Import Export

Total Exp+Imp

1309.04 1372.31 622.93 825.75 1104.83 1025.29 546.37 784.96 382.08 960.22 558.00 363.26 402.17 408.31 696.13 416.41 216.55 195.50 115.04 123.76 312.48 296.91 0.00 109.86 0.00 218.88 78.57 185.79 98.43 64.81 63.80 0.00 75.11 38.47 41.11 69.97 59.91 42.72 25.82 18.52 20.49 20.61 11.47 7.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 60.47

1196.24 1626.63 613.16 1239.78 197.16 53.65 726.40 125.77 378.70 120.02 66.11 80.36 98.06 74.59 5.63 25.96 58.62 141.65 1.18 126.63 1.33 0.42 0.00 146.72 0.00 1.99 129.14 1.57 0.48 80.24 0.18 119.45 0.00 1.84 63.38 8.62 27.32 5.77 8.92 11.11 7.61 0.01 1.15 0.00 0.42 0.00 0.00 0.00 0.00 0.00 0.00 91.58

2505.28 2998.94 1236.09 2065.52 1301.99 1078.94 1272.77 910.73 760.78 1080.24 624.11 443.62 500.23 482.90 701.76 442.37 275.17 337.15 116.22 250.38 313.81 297.33 0.00 256.58 0.00 220.86 207.71 187.36 98.91 145.05 63.98 119.45 75.11 40.31 104.49 78.59 87.23 48.49 34.74 29.63 28.10 20.62 12.62 7.21 0.42 0.00 0.00 0.00 0.00 0.00 0.00 152.04

2357.16 1156.64 1700.10 609.92 1098.00 998.95 729.45 673.72 537.67 36.25 288.78 347.85 251.63 247.38 8.49 214.09 287.98 208.93 319.87 150.79 9.64 15.95 287.62 6.50 243.14 0.00 1.72 10.76 66.73 0.13 75.79 0.00 39.77 65.55 0.98 15.32 1.50 0.58 0.23 5.11 4.45 0.66 0.74 1.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 295.81

4862.44 4155.57 2936.19 2675.44 2399.99 2077.89 2002.22 1584.46 1298.45 1116.49 912.89 791.47 751.86 730.27 710.25 656.45 563.16 546.08 436.09 401.18 323.45 313.28 287.62 263.09 243.14 220.86 209.43 198.12 165.64 145.18 139.77 119.45 114.88 105.86 105.47 93.91 88.73 49.07 34.97 34.73 32.55 21.29 13.37 8.27 0.42 0.00 0.00 0.00 0.00 0.00 0.00 447.86






august 2013 i cargotalk i 35

Cargo Performance Airports in India

Traffic statistics D omestic F reight

S. No. Airport

April 2013

Freight (in Tonnes)

For the Month April 2012

% Change 2013-14

For the period April 2012-13

% Change

(A) 16 International Airports 1 2 3 4 5 6 77 8 9 10 11 12 13 14 15 16

Chennai Kolkata Ahmedabad Goa Trivandrum Calicut Guwahati Lucknow Srinagar Jaipur Coimbatore Mangalore Amritsar Trichy Varanasi Portblair Total

6055 6318 2762 180 93 20 522 223 248 444 444 23 8 0 19 201 17560

6748 6447 2811 248 130 18 525 165 175 517 474 37 6 0 39 228 18568

-10.3 -2.0 -1.7 -27.4 -28.5 11.1 -0.6 35.2 41.7 -14.1 -6.3 -37.8 33.3 - -51.3 -11.8 -5.4

6055 6318 2762 180 93 20 522 223 248 444 444 23 8 0 19 201 17560

6748 6447 2811 248 130 18 525 165 175 517 474 37 6 0 39 228 18568

-10.3 -2.0 -1.7 -27.4 -28.5 11.1 -0.6 35.2 41.7 -14.1 -6.3 -37.8 33.3 - -51.3 -11.8 -5.4

17 18 19 20 21 22

Delhi (DIAL) Mumbai (MIAL) Bangalore (BIAL) Hyderabad (GHIAL) Cochin (CIAL) Nagpur (MIPL) Total

14834 13925 6587 2653 741 370 39110

16453 14987 6579 2740 728 394 41881

-9.8 -7.1 0.1 -3.2 1.8 -6.1 -6.6

14834 13925 6587 2653 741 370 39110

16453 14987 6579 2740 728 394 41881

-9.8 -7.1 0.1 -3.2 1.8 -6.1 -6.6

(B) 6 JV International Airports

(C) 7 Custom Airports 23 24 25 26 27 28 29

Pune Visakhapatnam Patna Chandigarh Bagdogra Madurai Gaya Total

1420 146 318 232 120 98 0 2334

2124 144 167 233 152 67 0 2887

-33.1 1.4 90.4 -0.4 -21.1 46.3 - -19.2

1420 146 318 232 120 98 0 2334

2124 144 167 233 152 67 0 2887

-33.1 1.4 90.4 -0.4 -21.1 46.3 - -19.2

30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 (D)

Bhubaneswar Indore Jammu Agartala Raipur Imphal Vadodara Ranchi Bhopal Aurangabad Leh Udaipur Rajkot Tirupati Dibrugarh Jodhpur Silchar 17 Domestic Airports (Total)

279 423 121 228 536 164 332 69 183 55 0 16 0 15 2 0 24 2447

269 339 109 214 480 220 410 86 134 75 0 147 1 38 1 0 36 2559

3.7 24.8 11.0 6.5 11.7 -25.5 -19.0 -19.8 36.6 -26.7 - -89.1 -100.0 -60.5 100.0 - -33.3 -4.4

279 423 121 228 536 164 332 69 183 55 0 16 0 15 2 0 24 2447

269 339 109 214 480 220 410 86 134 75 0 147 1 38 1 0 36 2559

3.7 24.8 11.0 6.5 11.7 -25.5 -19.0 -19.8 36.6 -26.7 - -89.1 -100.0 -60.5 100.0 - -33.3 -4.4

120 61571

154 66049

-22.1 -6.8

120 61571

154 66049

-22.1 -6.8

(D) 17 Domestic Airports

(E) Other Airports Grand Total (A+B+C+D+E)

36 i cargotalk i august 2013


Cargo Performance Airports in India

Traffic statistics

I N T E R N AT I O N A L F R E I G H T Freight (in Tonnes)

S. No. Airport

For the Month

April 2013

April 2012

For the period April

% Change 2013-14


% Change

(A) 16 International Airports 1 2 3 4 55 6 7 8 9 10 11 12 13 14 15 16

Chennai Kolkata Ahmedabad Goa Trivandrum Calicut Guwahati Lucknow Srinagar Jaipur Coimbatore Mangalore Amritsar Trichy Varanasi Portblair Total

18349 3295 1347 155 2229 2262 3 47 0 17 60 00 46 374 0 0 28184

19410 3397 847 181 4582 2716 0 73 0 20 39 00 68 225 0 0 31558

-5.5 -3.0 59.0 -14.4 -51.4 -16.7 - -35.6 - -15.0 53.8 - -32.4 66.2 - - -10.7

18349 3295 1347 155 2229 2262 3 47 0 17 60 00 46 374 0 0 28184

19410 3397 847 181 4582 2716 0 73 0 20 39 00 68 225 0 0 31558

-5.5 -3.0 59.0 -14.4 -51.4 -16.7 - -35.6 - -15.0 53.8 - -32.4 66.2 - - -10.7

32241 38274 12974 4355 3516 37 91397

31410 38358 11991 3745 2716 34 88254

2.6 -0.2 8.2 16.3 29.5 8.8 3.6

32241 38274 12974 4355 3516 37 91397

31410 38358 11991 3745 2716 34 88254

2.6 -0.2 8.2 16.3 29.5 8.8 3.6

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

- - - - - - - -

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

- - - - - - - -

0 0 119581

0 0 119812

202 0 119581

0 0 119812


(B) 6 JV International Airports 17 18 19 20 21 22

Delhi (DIAL) Mumbai (MIAL) Bangalore (BIAL) Hyderabad (GHIAL) Cochin (CIAL) Nagpur (MIPL) Total

(C) 7 CUSTOM AIRPORTS 23 24 25 26 27 28 29

Pune Visakhapatnam Patna Chandigarh Bagdogra Madurai Gaya Total

(D) (E)

17 Domestic Airports Other Airports Grand Total (A+B+C+D+E)

- - -0.2

Kale Logistics Unveils CCS 2.0 at IATA e-cargo Conference, 2013


he CCS 2.0 on Kale’s UPLIFT platform will transform the way e-Cargo is delivered and consumed by the cargo supply chain. Kale Logistics was present at the 2nd e-Cargo Conference & Workshop held at the IATA Conference Centre on June 1820, 2013 at Geneva, Switzerland. Amar More, SVP, Kale Logistics Solutions was the key speaker at the session ‘Expanding the network for e-Cargo’. More unveiled Kale’s next-generation Cargo Community 38 i cargotalk i august 2013

System (CCS 2.0) on the UPLIFT platform. The CCS 2.0 on UPLIFT promises to go beyond EDI exchange to deliver a collaborative platform that connects all the stakeholders of the cargo supply chain. The core idea of the CCS 2.0 is in orchestrating a rapid adoption from small, medium and large businesses in a manner that delivers demonstrable business benefits. The CCS 2.0 on the UPLIFT platform provides four unique enablers for a rapid transformational adoption

• It goes beyond the legacy EDI exchange to act as common community platform • The platform provides a web portal for the participants to ‘automate’ their operations and seamlessly transact (electronically) with other stakeholders • It delivers substantial and demonstrable dollar benefits to all participants • A web based platform, it offers complete shipment visibility to all stakeholders including the shipper and the consignee www.cargotalk.in

Cargo Performance International Airlines

Airline-wise International Freight Traffic Statistics i N i N D I A during J anuar y - M arch 2 0 1 3 Airlines

Freight (in tonnes)

% Share

Emirates............................... 48452............... 14.13 Jet Airways 31162................. 9.08 Cathay Pacific Airways 24145................. 7.04 Singapore Airlines............... 22419................. 6.54 Air India 22317................. 6.51 Lufthansa 21376................. 6.23 Qatar Airways...................... 17286................. 5.04 British Airways 15525................. 4.53 Thai Int’l Airways 13766................. 4.01 Ethiad Airways..................... 13130................. 3.83 Saudi Arabian Airlines 7154................. 2.09 Federal Express 6893................. 2.01 Malaysian Airlines................ 6609................. 1.93 Srilankan Airlines 6094................. 1.78 Air France 5964................. 1.74 Swiss Airways........................ 5071................. 1.48 Martin Air 4961................. 1.45 Aerologic Freighter 4786................. 1.40 Turkish Airlines..................... 4319................. 1.26 Air Arabia 3627................. 1.06 Virgin Atlantic 3260................. 0.95 Kuwait Airways..................... 3099................. 0.90 Ethopian Airlines 2617................. 0.76 Oman Air 2574................. 0.75 Kallita Airlines....................... 2551................. 0.74 Gulf Air 2239................. 0.65


Freight (in tonnes)

% Share

Dragon Air.............................. 2189................. 0.64 United Parcel Services 2034................. 0.59 Uzbekistan Airways 2012................. 0.59 Indigo Airlines........................ 1735................. 0.51 Finn Air 1541................. 0.45 KLM Royal Dutch 1534................. 0.45 Nordic Global Airlines........... 1479................. 0.43 China Eastern Airlines 1330................. 0.39 All Nippon Airways 1243................. 0.36 Japan Airlines........................ 1214................. 0.35 United Airlines 1180................. 0.34 Air Asia 1172................. 0.34 Air Mauritius......................... 1040................. 0.30 South African Airways 1014................. 0.30 Tiger Airways 1011................. 0.29 Aeroflot................................... 987................. 0.29 Kenya Airways 884................. 0.26 Spicejet 768................. 0.22 Air China................................. 748................. 0.22 Austrian Airlines 742................. 0.22 Delta Airlines 715................. 0.21 Silk Air..................................... 607................. 0.18 China Airlines 523................. 0.15 El-Al-Isreal Airlines 496................. 0.14 Mahan Air................................ 475................. 0.14 Korean Airlines 466................. 0.14


Freight (in tonnes)

% Share

Eva Air Cargo......................... 431................. 0.13 Kam Air 428................. 0.12 Ariana Afghan 370................. 0.11 Baharain Air............................ 344................. 0.10 Maldivian Airlines 243................. 0.07 China Southern 227................. 0.07 RAK Airways.......................... 205................. 0.06 Safi Airways 174................. 0.05 Iran Air 172................. 0.05 Asiana Airlines........................ 164................. 0.05 Bankok Airways 157................. 0.05 Air Astana 154................. 0.04 Yemen Airways........................ 148................. 0.04 Fly Dubai 138................. 0.04 Turkmenistan Airlines 138................. 0.04 Phillipines Airlines................... 123................. 0.04 Pakistan Int’l Airlines 105................. 0.03 Thai Air Asia 102................. 0.03 Druk Air.................................... 89................. 0.03 Royal Jordanian 81................. 0.02 Biman Bangladesh 68................. 0.02 Egypt Air................................... 63................. 0.02 Mihin Lanka 49................. 0.01 Iraqi Airways.............................. 5................. 0.00 Other Non-Schd Operators 8310................. 2.42 Total 343023............. 100.00 Source: AAI

Calendar of International Logistics Events in 2013 Supply Chain Transformations 2013

August 22-24, 2013 Clarks Exotica, Bengaluru Contacts: Srinath Manda, Program Manager, Transportation & Logistics Practice M: +91 98848 72788 E: srinathm@frost.com Web: www.frost.com Event Summary: Frost & Sullivan is conducting its annual strategy workshop for the logistics industry with an objective to bring stakeholders together, identify key challenges faced by the logistics fraternity and envision potential strategies for tapping opportunities by fulfilling their mutual needs. This year’s workshop would focus on developing strategies for different segments of the logistics fraternity. Growth opportunities for each segment emerging from new 40 i cargotalk i august 2013

policies like FDI in retail sector and suitable strategies for each segment would also be defined. nnn nnn nnn 7th Express, Logistics & Supply Chain Conclave

September 26-17, 2013 Taj Lands End, Mumbai Contact: 022 61381812 / +91 9870786740 Web: www.elscconclave.com Event Summery: With the theme this gala evening of awards draws close to 600 industry leaders & practitioners from the SCM community. The ELSC conclave would also feature an exhibition area which has 30 stalls where supporting companies showcase their products and services during the conclave.

The 8th China (Shenzhen) International Logistics and Transportation Fair

October 14-16, 2013 Shenzhen Convention and Exhibition Center Contact: 86-755-83581250 / 83581353 E-mail: scm002@scmfair. com; iscm002@scmfair.com nnn nnn nnn FIATA World Congress

October 15-19, 2013 Suntec Singapore Convention and Exhibition Centre Contact: Ace Daytons Direct (International) Pte Ltd Tel: +65 6379 5260 / +65 6379 5262 (ops) E-mail: admin@fiata2013.org nnn nnn nnn Air Cargo & Logistics Asia 2013

October 16 – 18 Marina Bay Sands

Convention & Exhibition Centre Singapore Contact: nvfenema@acla.asia / nvfenema@vfpr-media.com Mobile: +65 92206504 nnn nnn nnn Southern Asia Ports Logistics & Shipping – Mumbai

October 23-24, 2013 The Leela Kempinski Hotel Mumbai, India Contact: Transport Events Management 2nd Floor, 53-3, Jalan USJ 9/5R, 47620 Subang Jaya Selangor Darul Ehsan, Malaysia +(60)-(3)-80235352 nnn nnn nnn Europort 2013

November 5-8 Ahoy, Rotterdam Contact: Ahoy-weg 10 3084 BA Rotterdam T: +31 10 293 32 50 E-mail: info@europort.nl www.cargotalk.in

Family Album Annual Day

An evening with a difference to celebrate CSC’s Annual Day

42 i cargotalk i august 2013


The Annual Day function of Cargo Service Center, which was celebrated on June 28 in New Delhi, was a fabulous trade get-together, thanks to unlimited fun and frolic. Radharamanan Panicker, Managing Director, DCSC was present on the occasion to interact with the guests. A large number of freight forwarders, airlines, DIAL officials and other stakeholders were present at this spectacular event.


august 2013 i cargotalk i 43

Family Album Launch Function


ade m r t s t s o h i x a B JM

DICT f o h c n u a l e h t on e Meet on June

ad hosted a B2B Tr launch of JM Baxi Group occasion of the e th on hi el D in Sonepat, 28 in New Terminal (DICT) go ar C l na io at Delhi Intern l MoUs were ade meet, severa s. Shipping tr is th t A . na ya Har stomer DICT and its cu s House signed between erators, Custom op n ai tr r ne ai nt nsignees lines, co , shippers and co rs de ar rw fo t gh agents, frei t at the meet. were also presen

44 i cargotalk i august 2013



august 2013 i cargotalk i 45

Guest Column Role of Technology

Speeding up Services

Inventory and Logistics Management Pragya Agrawal

The biggest challenge for any industry player is to trap the market segments and identify the potential prospects.

The need of the hour is to have a centralised database management engine, which can keep track of the list of the entities involved in the business ever


ith emerging business needs and profound knowledge centres, geographical barriers have reduced by a significant percentage. In the era of smartphones, technology has enabled the movement of goods in one click. The fast processing of customers’ orders, in turn meets the customer satisfaction and the revenue bar for the industry player rises. The domain of logistics has brought splendid opportunity and a drift in the form of outsourcing of business. Niche players in the market look for 3PL services to execute the job with significant service level and in a cost effective manner. Amongst all, the biggest challenge for any industry player is to trap the market segments and identify the potential prospects. Within the logistic realm, specifically focussing on the forwarding domain, the major time-consuming task is to manage the customer and vendor database with whom the company is dealing on the daily basis, along with the associated rates.

Challenges persisting in the Industry a) Conventional database management through carbon stationary and Excel sheets b) Quoted rates, not toning the industry standards c) Mismatch in tariffs as per existing market rates d) Filing compliance with regulatory bodies, especially in sea transport e) Collaborative platform not in sync for the cross functional teams f) Extensive billing modules g) Mutually exclusive solutions 48 i cargotalk i august 2013

Requisite solution

In the fluctuating trends and traditions, generally software solutions are considered to have a magic wand providing significant insight and inimitable solutions to the problems existing in the sphere. There has been a tremendous growth witnessed in the software solution providers, for the logistic domain. However, the industry is in need of a solution which can effectively cater to the challenges faced and provides an agreeable and best possible solution which increases the productivity extensively.

Extensive Database

The need of the hour is to have a centralised database management engine, which can keep track of the list of the entities involved in the business ever. A proper system which can ensure registering of new potentials either as customers or vendors which can be traced at a future date for reference. Such a system would also act as a central repository of rates around the globe, seeking almost negligible references through Excel spreadsheets and through the shuffling amongst the carbon stationary. This would significantly reduce the time and efforts of the end users.

Disparity in the industry standards

With uneven business trends, the rating standards and pattern also changes in the industry. It becomes very tedious to keep track of such variations on carbon stationary. To ease this, industry is in need of a solution, wherein, one click would list out the set of existing rates and can provide an analysis of the real time tariffs. Such a solution would also turn out to be a cost effective, time effective & transparency between cross www.cargotalk.in

functional teams would improve thereby increasing the productivity.

Single click invoicing

If any software system has too much manual intervention then the overall productivity of such software solutions is not up to the mark and they would not contribute much in the ROI. In single click entire process should get automated. And as an output, customer should have a handy invoice ready to be posted to the accounts.

Integrated suite

Generally the software solution providers focus on resolving the problems at individual levels. However, the major component of complexity exists in the integrated version of such requirements. The industry today, demands an integrated suite which caters to the persisting problems as a whole bunch of solution, seeking minimal efforts from end users.

Reducing carbon stationary and optimising rate with eRating

Considering the on-going changes and


drifts in forwarding industry, Foursoft has developed pricing software which focusses primarily on providing the solutions to the key challenges existing within the realm. They are: a) Centralised DB software, covering all the geographies. b) The Software is capable enough to accommodate the complete life cycle of the rate management. c) Efficient rate search module which comprehensively reduces the time and efforts. d) The software has capability to be integrated through web services with any external forwarding system. e) Software is well equipped with one click features like sending RFQs to carriers, sending instant quotations to the prospects thereby providing the best in class rating solution for the forwarding domain. More often, it has been observed that any shipper or equivalent representative publish shipping details in print media in the form known as tenders requesting

If any software system has too much manual intervention then the overall productivity of such software solutions is not up to the mark forwarders to bid for shipping the goods. If a forwarder has a ready solution available, than immediate succeeding step should be to incorporate the shipment details in the software and look for the best matching rates from the carrier (available in the database). Once the best possible rate from the carrier is identified, then it’s just the question of adding mark-ups to them and put to the fore the bid to the customer. Such automation would bring a tremendous break-through in the series of operation performed to respond to such tenders. (The author Pragya Agrawal is Functional Consultant, PMM Team, Foursoft)

august 2013 i cargotalk i 49

Government Policy Current Issues

According to the decision of the Government of India from July 1, CBEC started Customs Clearance of all export goods on a 24x7 basis from four major air cargo complexes/airports: Delhi, Mumbai, Bengaluru and Chennai. Trends show the feedback from the shippers and freight forwarders is reasonably good. However, forwarders are making cautious strides in view of the present market scenario and additional costs involved.


ccordingly the new facilities (24x7 Customs clearance), all exports including those made under export incentives scheme as well as duty drawback scheme will now be possible on 24x7 basis. The extension of 24x7 customs clearance facility for imports and exports has been under consideration of Government for some time. The present expansion of the 24x7 Customs clearance facility to all exports from identified Customs stations addresses the requirement of exporters who export under export incentive schemes. Commenting on the feedback so far Sushant Nigam, General Manager (Cargo), Commercial, Delhi International Airport

informed that the air cargo trade functioning at the IGI Airport has lauded the initiatives from CBEC for extending Customs Clearance coverage to all types of Export Cargo on 24x7 basis w.e.f July 1, 2013. “All the stakeholders are fully supporting the GoI initiative and committed to make it a great success,” he said. According to Nigam, the daily night average of general export cargo (excluding meat and other perishables) tendered at the IGI Airport Cargo Terminals for Customs clearance and upliftment, has phenomenally increased. “The service providers at the airport have made arrangements to facilitate the clearance during the odd hours too.

n Ratan Kr Paul

24x7 Customs Clearance Forwarders cautious to step up

50 i cargotalk i august 2013


Sushant Nigam General Manager (Cargo) Commercial Delhi International Airport

Manoj Singh Vice President, Cargo Mumbai International Airport

New user agencies of such facilities are increasing day-by-day,” he added. In his opinion, this has enabled the Indian trade to compete well with their counterparts in other countries. “The entire industry is hoping for its optimum utilisation by the users and equally optimum level of services from the regulatory and facilitating agencies,” Nigam added. According to Manoj Singh, Vice President, Cargo, Mumbai International Airport (MIAL), extension of 24/7 Customs clearance for all export goods is a positive move by customs board to boost country’s exports and improve air cargo supply chain efficiency. Non-availability of this facility has been a major constraint in air export supply chain. This will lead to uniform utilisation of air cargo facilities through round the clock cargo acceptance and Customs clearance. This will not only improve the throughput at the air cargo terminals but also improve the airport performance through reduction of overall

Recommendations from FFFAI

 Main shift should operate full strength  The night shift should operate with skeleton staff to avoid staff shortage  Adequate security should be provided for late hours  All stakeholders should be taken on board  It should be implemented in a phased manner and modifications be done on learning and experience as experience of working in every location will be different in various aspects  The study team should include all the stakeholders


Shantanu Bhadkamkar Chairman FFFAI

Ashish Mahajan Director Perfect Cargo Movers

In September 1, 2012, customs began functioning on 24x7 basis to clear select export consignments under Free Shipping Bills as well as identified import consignments dwell times. “It is now the collective responsibility of the custodians, air cargo agents, customs house agents and the exporters to make optimum use of the opportunity to achieve air cargo supply chain dwell times of global standards. Other regulators should also move in the same direction for optimisation of supply chain timelines,” he said.

N Sivasubramaniam Director Air Connection

the reason for this decision is to mitigate the problems due to inadequate infrastructure. This, therefore, can only be a temporary fix, and it can’t be a permanent solution. Ashish Mahajan, Director, Perfect Cargo Movers said that the company is ready to utilize the new facilities from Customs, as and when there is a demand from their customers. However, at present he does not see any requirement because of the sluggish market condition. “I think most of the freight forwarders are not in a position to afford to increase overhead cost at this juncture, by deputing extra manpower. He also maintained that to make the project a success Customs department has to take some extra efforts, so that cargo is cleared during odd hours in real terms.

Shantanu Bhadkamkar, Chairman, FFFAI, however maintained that 24x7 Customs clearance is yet to be fully implemented by Customs. “Besides, all the stakeholders need to cooperatively keep their offices open for longer hours for the full potential of 24x7 to be realised. The stakeholders include shipping lines, airlines, consolidators, custodians, octroi authorities, stamp duty collection, banks and many more,” he pointed out.

N Sivasubramaniam, Director, Air Connection, pointed out to the shortage of Customs officials. “For example, we have seen in Chennai one Customs official has to take care of two CFSs (Container Freight Stations). On the other hand, there are some officials in charge of Customs clearance, who do not have detailed knowledge about Customs clearance Rules and Regulations,” he said. Sivasubramaniam also expressed disappointment on the way of functioning by the facilitators like airport operators. Currently, the 24x7 Customs clearance has not been implemented at Chennai airport, despite the CBEC decision.

“It’s still not known if it will increase or decrease the transaction costs as operating three shifts will have cost implications, particularly as the productivity in shifts other than the main shift is usually low. Keeping offices open 24x7 is a new experience for almost all stakeholders. Many just don’t have the means and management width to support it,” Bhadkamkar further added. In his opinion,

When contacted, Chennai airport sources informed that the airport is all set to implement the CBEC decision. However, they were awaiting the clearance and arrangement from local customs authority. The airport would be having the PTFC (Permanent Trade Facilitation Committee) meeting to decide about the time of implementation. august 2013 i cargotalk i 51

Shipping & Ports Infrastructure Update

t NN Kumar, Chairman, Jawaharlal Nehru Port and Anil Singh, Senior Vice President and Managing Director, DP World Subcontinent Region signing the agreement

New container terminal at Nhava Sheva will be operational by 2015 DP World and Jawaharlal Nehru Port recently signed an agreement in New Delhi that awarded DP World to construct and operate a new container terminal at the port. DP World received the Letter of Award for the new Nhava Sheva Gateway Terminal project in November last year. The concession document was exchanged between GK Vasan, Minister of Shipping and Sultan Ahmed Bin Sulayem, Chairman of DP World in New Delhi.


he new 330-metre berth with 27 hectares of yard will add 800,000 TEUs (twenty foot equivalent container units) of container capacity and help ease congestion at Jawaharlal Nehru Port. The new terminal is adjacent to the Nhava Sheva International Container Terminal (NSICT), which DP World currently operates. The new container terminal will be equipped with four modern rail mounted quay cranes and 12 rubber tyred gantry cranes. DP World will invest around US$200 million to build the terminal, which is expected to commence operations in 2015. The concession was signed by NN Kumar, Chairman, Jawaharlal Nehru Port and Anil Singh,

Senior Vice President and Managing Director, DP World Subcontinent Region. Also present on this occasion were officials from the Government of India and senior members of Jawaharlal Nehru Port Trust and DP World. Speaking on the occasion, Sultan Ahmed Bin Sulayem said, “With a 17-year concession period, we are investing for the long term, and we look forward to continuing to work with Jawaharlal Nehru Port Trust into the future.” “We were the port’s first private partner in 1997 with NSICT, and together with the port, we have played a key role in serving India’s growing trade over more than a decade,” added Singh.

JNPT celebrates silver jubilee year


p GK Vasan, Union Cabinet Minister of Shipping and Milind Deora, Minister of State (Communications, IT and Shipping) formally launching the silver jubilee year celebration along with other dignitaries 52 i cargotalk i august 2013

awaharlal Nehru Port Trust (JNPT) celebrated its silver jubilee on July 5 this year in Mumbai. GK Vasan, Union Cabinet Minister of Shipping and Milind Deora, Minister of State (Communications, IT and Shipping) were present at this function as the Chief Guest and the Guest of Honour respectively. Also present on the occasion were Dr Viswapati Trivedi, Secretary (Shipping); T Kumar, Additional Secretary, Financial Advisor; NN Kumar, Chairman, JNPT and several other dignitaries. The Ministers also felicitated the achievers of the shipping and

port industry. Addressing the gathering, Vasan informed that currently, JNPT is handling 44 per cent of India’s container trade. “The port will continue to expand its capacity, improve its efficiency and cater to the requirements of trade in the years to come,” he said. “JNPT is one of the leading ports in the world. It is emerging as the main facilitator of India’s international trade. We want it to be recognised as India’s premier container port providing integrated logistics to the best interest of trade and customers,” supplemented Trivedi. www.cargotalk.in

Shipping & Ports New Launch

International cargo terminal in Sonepat To be a hub in North India In view of the huge movement of containerised cargo movement to and from North India, JM Baxi Group has launched Delhi International Cargo Terminal (DICT) at Sonepat in Haryana with an investment of `200 crore for the Phase-I. Established on 65 acres of land and with a warehousing capacity of 50,000 sq ft, the multi facilities terminal is capable to handle 500,000 TEUs per annum. p Delhi International Cargo Terminal officials showcasing a model of the new terminal, at Sonepat.


ICT is an integrated rail-linked cargo terminal and inland container depot, to cater to the growing trade of NCR and North India, for both EXIM and domestic sector. The terminal is strategically located 1.5 km off National Highway No.1.

to facilitate the cargo operations, modern handling equipment like reach stackers, hydras, forklifts, 75 road trailers and 90 reefer plug points are being deployed.

In addition to 500,000 TEUs per annum when fully operational, DICT will also be able to handle a 30,000 KL liquid tank DICT is connected with three rail farm facility, 5,000 MT capacity controlled lines, linked through the serving station temperature warehousing and cold storage, of Bhodwal Majri. The terminal has been mechanised bagging plant with a capacity of segmented in three different areas for 2,500 tonnes per day and grain/bulk silos for handling of general containerised cargo, storing 50,000 MT. Speaking at the launch perishable cargo and liquid cargo. In order function in New Delhi, Rajeev Mittal, President, DICT, said, “With the growing retail market, DICT will act as a hub and DC (distribution Total Area : 65 acres centre) for North India. It Existing Warehousing Available : 5,000 sq ft is therefore rightly termed Future Warehousing Planned : 5,000 sq ft as an ICT (International Reefer plug points : 90 Cargo Terminal) and not Rail handling Lines : 3 just another ICD (Inland Handling Equipment : Reach Stackers, Hydra, Container depot.” Cranes, Fork Lifts Container Repairing Facility : Available Commenting on the Trailers : 75 (own) advantage of the location, Liquid Tank Farm Facility : 10 acres he highlighted that DICT Controlled Temperature : 5 acres is approximately 35 Warehousing area kms north from KMP Mechanised Bagging Plant : 2,500 tonnes per day Expressway passing point at Kundli. “This

Facts at a Glance

54 i cargotalk i august 2013

is from where North India cargo funnels into Delhi. It is estimated that 80 per cent of the NCR traffic has a natural advantage in using DICT as a gateway. NCR Cargo break-up from North Direction is estimated 2,50,000 TEUs/annum, from North West 2,50,000 TEUs/annum and from North East is 3,50,000 TEUs/annum.,” he said. “In addition, DICT is privileged to be a part of Delhi Commissionerate, the most preferred by the trade as they have well-established practices and systems. Also, many CHAs have existing licenses which can be exercised with immediate effect,” he added. “DICT is a complete common-user facility where all stakeholders will have a level playing field and will be able to establish their businesses according to their requirements,” supplemented IVS Murlidhar, Sr Vice President, DICT. He also emphasised that DICT offers better turnaround time for containers, trains and road transport vehicles; thereby saving cost and time. According to him, there is a high demand for less-than-container load (LCL cargo) and consolidation with increasing global trade and reduction in trade barriers. In the meanwhile, some five container train operators have confirmed to start services from DICT to some leading ports in the country. www.cargotalk.in

Green Initiatives CSR

Mahindra Logistics Initiates sustainable campaign for green cause In view of the increasing threat to the nature and environment resulting in calamities, Cargotalk has been emphasising on a strong and sustainable ‘Go Green’ campaign. From this issue onward, it will highlight major initiatives from cargo and logistics companies for the green cause.

p MLL’s briefing to the employees on ‘Going Green’


ahindra Logistics Limited (MLL), one of India’s largest integrated 3PLs, has in the recent past expanded its footprint in supply chain management and people transport solutions considerably. MLL is fast spreading its presence in other industry verticals such as consumer durables, FMCG, high-tech and engineering goods.

“With this fast-paced expansion and growth across its business operations, a commitment to minimise the impact of our business activities on the environment is imperative,” said Pirojshaw Sarkari, CEO, Mahindra Logistics. “What we at MLL seek to achieve ultimately is an environment where our growth and success is always ‘inclusive’ and has a minimum impact on the environment,” he said. MLL has undertaken several ‘Green Initiatives’ which will impact greenhouse gas emissions and improve the carbon efficiency of various core and supporting business activities. Some of the major initiatives are: Project Falcon (Freight And Logistics Control), CO2E (carbon dioxide equivalent), Network Optimisation, Cross-Dock, Route Optimisation, Fleet Optimisation and Reengineering of Vehicles. 56 i cargotalk i august 2013

What we at MLL seek to achieve ultimately is an environment where our growth and success is always ‘inclusive’ and has a minimum impact on the environment. Pirojshaw Sarkari

CEO, Mahindra Logistics

In 2012, MLL launched this programme focussing on improving operational control and on improving efficiency. One of the key areas addressed by this project is vehicle quality optimisation. Improving asset productivity through optimum utilisation of vehicle capacity is another area of focus. The first and most immediate benefit of these controls was a reduction in the unit consumption of fuel. As part of measuring and reducing emissions, MLL established a CO2E baseline. The company currently measures and tracks the carbon footprint per transported person kilometre or per

transported vehicle kilometre or per transported unit kilometre-across its supply chain management and people transport solutions operations. MLL’s cross-dock operations, which enable the better utilisation of larger vehicles, has allowed the company to save in excess of 260,000 litres of fuel in a single year at just one cross-dock. “With cross-docks being operated or set up at four different locations across the country; the benefit, both operationally and environmentally, will be considerable,” said Sarkari. He also informed that MILES (Mahindra Integrated Logistics Execution System) is MLL’s integrated transport management solution, based on Oracle Transport Management System (OTM). MILES allows the company to plan the most optimum routes based on various internal and external factors. Mahindra People Transport Solutions, a division of Mahindra Logistics, uses an integrated IT solution which spans route planning, optimisation, live vehicletracking and real-time variance tracking and reporting. “We also extensively modify the design of vehicles used in our transport operations, resulting in not just increased carrying capacity and optimised volumetric efficiency, but also a reduction in the unit consumption of fuel,” asserted Sarkari. www.cargotalk.in

User’s Perspective Siemens

For efficient 3PLs Need for bespoke supply chain solution

Siemens has made its presence felt in India since 1957. Siemens in India, is subsidiary of Siemens AG, Germany. Presently, the company has 21 factories across India and products in four verticals such as industry, energy, healthcare and infrastructure and City. Pramod Sant, Vice President, Supply Chain Management-Indirect Material, Export Control & Customs, Siemens spoke to Cargotalk about the critical role played by supply chain and logistics management behind the company’s success. n Ratan Kr Paul


he products manufactured and distributed by Siemens span widely including energy sector, gas turbines, generators, transformers, equipments for power transmission and distribution. The industry sector includes automation controls for steel rolling plants, cement, textiles, paper, food beverages and dairy products. This also includes conventional product such as switchgears, motors, M.C.C.B and controls for the machine tool industry. The infrastructure includes rail projects such as metro rail coaches, rail signaling and automation, low and medium voltage panels, smart grid products and building technology systems such as fire alarm and safety systems. Siemens healthcare sector includes imaging equipment such as CT, MRI, mammography, ultrasound, X-ray, and therapeutic and diagnostic equipment. “The complexities of Siemens supply chain does not end here, as it includes transportation of 320 tonne gas turbines and generators, transportation of 75 tonne to 340 tonne transformers to remote location site, movement of rail coach from factory to north or southern part of India , movements of MRI weighing 12 tonnes to North East India where the MRI magnet requires filling of helium on the way at least three times in transit, and so on and so forth. Spares supplies to cement or steel plant are very critical to keep continuous process industry running,” revealed Sant.

Siemens Supply Chain

In his opinion, due to variety in supply chains, it is not possible to have one or two logistics service providers. The Siemens supply chain success is ensured by engaging best logistic service providers, suitable for each type of supply chains, and internal expert teams involved in negotiating contracting and monitoring logistics. “Internal teams need to have specialised knowledge in each topic. To ensure that 58 i cargotalk i august 2013

processes are improved regularly, new IT tools are implemented and cost overruns are avoided. The internal team includes transport engineers and employees trained in logistics at Siemens AG, Germany,” Sant said. According to him, logistics industry is presently facing many challenges in India.

Most service-providers have excellent setups in a few places like Mumbai, Delhi or Chennai, but when it comes to all-India availability, they fall short.” Pramod Sant

Vice President, Supply Chain Management-Indirect Material, Export Control & Customs, Siemens

Firstly, there is a shortage of institutes who are able to churn out a good supply chain or logistics students. “Many such institutions have good academic courses, but very little practical knowledge. There is need to inculcate learning of basic industry supply chains, instead of so-called ‘fancy supply chain’,” he maintained. “Secondly, infrastructure issues are increasing and organisations are facing challenges with airports, ports, roads and rails. Delays, unreliability with constant increase in costs, are common. Logistics costs in India are one of the highest anywhere,” he highlighted.

Lack of efficient 3PLs

In Sant’s opinion, Indian logistics companies have a long way to go to understand and support manufacturing companies in all areas. “Each company wants to offer what is available in their scope and avoid what is not. Secondly, the ability to assess a situation and proactively take necessary steps to maintain a smooth supply chain is still lacking. Most serviceproviders have excellent set-ups in a few places like Mumbai, Delhi or Chennai, but when it comes to all-India availability, they fall short,” he pointed out. He also pointed out that availability of qualified efficient people for service providers is not consistent. Most of the time, service-providers learn new things by trial and error and at the cost of customer. “Time and energy required to understand a customer is very high initially, and most service providers are reluctant to invest in the same. Today, every logistic company claims to be a 3PL company. In case of a diversified company like Siemens, a 3PL company needs to have good understanding of various modes of distribution. This includes surface transport consisting of FTL, part loads, and various types of trailers; low bed semi-load and handling of ODC and surface or air express,” he says. www.cargotalk.in

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